The post AUD/USD falls toward 0.7000 after pulling back from three-year highs appeared on BitcoinEthereumNews.com.

AUD/USD loses ground after three days of gains, trading around 0.7030 during the Asian hours on Friday. The pair remains subdued following the release of Australia’s Producer Price Index (PPI), which climbed 3.5% year-over-year (YoY) in the fourth quarter of 2025, the same pace as in Q3. However, the Australian Dollar (AUD) may regain its ground as hotter-than-expected Australian inflation data, released earlier this week, boosted the odds of a Reserve Bank of Australia (RBA) rate hike as early as next week. Markets now price in over a 70% chance of a 25-basis-point (bps) hike by the RBA from the 3.6% cash rate, up from 60% before the release, with rates fully priced at 3.85% by May and around 4.10% by September. US Treasury noted in a semi-annual foreign-exchange report released on Thursday, “Given China’s extremely large and growing external surpluses and now substantially undervalued exchange rate, it is important that the Chinese authorities allow the RMB exchange rate to strengthen in a timely and orderly manner in line with macroeconomic fundamentals,” reported by Bloomberg. Bloomberg also reported late Thursday that US President Donald Trump said that he will announce his choice to replace Jerome Powell as the chair of the Federal Reserve (Fed) on Friday morning. Trump said that his pick will do a “good job” and that he wants the US central bank to cut rates when there are signs of economic growth. Australian Dollar FAQs One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia,…

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Filed under: News - @ January 30, 2026 1:24 am